An official has attributed low foreign direct investment (FDI) in the Mekong Delta over the past years to poor infrastructure.
|Workers at a tra fish farm in Can Tho transfer fish for processing. (Photo: VNA/VNS)|
Vo Hung Dung, Director of the Can Tho chapter of the Vietnam Chamber of Commerce and Industry (VCCI Can Tho), said while the Mekong Delta’s provincial competitiveness index (PCI) is high compared to the country’s average, FDI attraction not only relies on business environment but also on geographical location, transport and infrastructure.
He cited the examples of Long An and Tien Giang provinces, which have led the region in attracting FDI in recent years despite a low ranking in PCI, noting that the two provinces borde the southern economic hub of Ho Chi Minh City.
Dung pointed to the fact that Hanoi and Ho Chi Minh City are the places where FDI concentrates as they are major urban centre with developed infrastructure and good connectivity.
The VCCI official is optimistic that when the Trung Luong – My Thuan and My Thuan – Can Tho highways, Vam Cong and Cao Lanh bridges, and regional logistics centre are put into use in the coming years, the Mekong Delta is expected to lure more FDI.
He also highlighted a change of direction in FDI flow in recent years, with more FDI reaching Can Tho City and Vinh Long province in the centre of the Mekong Delta. In previous years, the flow mostly reached Long An and Tien Giang and part of Kien Giang.
Last year, the Mekong Delta attracted US$1.36 billion worth of FDI, raising the number of foreign-invested projects to 1,324 with total registered capital of over $18.9 billion, accounting for 5.8 percent of the country’s total project number and 6 percent in value.
According to VCCI Can Tho, the region drew 27 FDI projects worth $103 million in the first quarter this year. Of them, 15 projects registered additional capital worth $31 million while $50 million was paid for stock purchase deals and the remaining was investment in new projects.
Tien Giang led the region in the period with $54.62 million and two new FDI projects.